Sony Could Buy Toshiba’s Image Sensor Business [Rumor]

Toshiba Corp is in talks to sell its image sensor business to Sony Corp for about ￥20 billion (US$164.6 million) to raise cash after an accounting scandal, people familiar with the negotiations said yesterday.

The company is going with a restructuring post the reports this year in which the earnings of the company were overstated by $1.3 billion going back to fiscal 2008-09.

The sources added that the finalization of the sale to Sony is likely to occur soon.

In April, it was reported that Sony expected operating profits to more than quadruple in the year, with strong sales of camera sensors and cost cuts.

According to the official press release, “In the semiconductor business, where image sensors are a primary area of focus, Sony will establish Sony Semiconductor Solutions Corporation (“Sony Semiconductor Solutions”) to further reinforce this business, and concentrate on sustained growth“.

The company is taking their imaging sensor business very seriously. The company is now looking to offload its manufacturing plant for image sensors, located in the Oita prefecture of southern Japan, and then exit the image sensor industry altogether, according to the sources. However, Sony official declined to comment on these developments.

This business marks a comeback for Sony as it has already become a dominant player in this vertical with clients such as China’s Xiaomi, India’s Micromax Informatix, apart from Apple and Samsung Electronics, who all use Sony’s sensors in its smartphones.

President Masashi Muromachi had hinted that the system LSI and discrete semiconductor businesses would be the first to undergo restructuring once a new management team took over in late September.

Sony chief executive Kazuo Hirai earlier said that his company was in discussions with vehicle manufacturers to supply its image sensors.